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Railway stocks crash: Following the sell-off in the Indian stock market, railway stocks came under the bear's radar during Thursday's trading. Flagship railway stocks IRFC, Ircon International, Rail Vikas Nigam Limited (RVNL), Railtel Corporation, Container Corporation of India, etc., are trading in the red. Ircon shares witnessed maximum beating and crashed over 6%. However, IRCTC shares are in the green zone by a whisker.
According to stock market experts, railway stocks are falling due to negative secondary-market sentiment. These railway stocks had witnessed a volume rally on Wednesday after the weekly and monthly expiry on Tuesday. This could also be a reason for profit-booking in railway stocks, as market sentiment is turning weak on Thursday.
Speaking on the reason for the drift in the railway stocks, Avinash Gorakshkar, Founder of Avinash Mentor Research, said, “Railway stocks are falling because the market sentiments are weak. So, today's fall can be attributed to the weak trends on Dalal Street. However, there is also one technical reason. On Tuesday, there were monthly and weekly expirations. So, on Wednesday, railway stocks witnessed a strong volume rally, which spurred profit-booking when the market mood changed to bearish.”
Gorakshkar said that railway stocks' fundamentals are still intact and that this dip should be taken as a value-picking opportunity, and advised investors to buy Texmaco Rail and Engineering. He said that the company is in the metro rail business and that there is strong demand for metro railway projects and ongoing projects, which are expected to fuel the company's order book in the medium to long term.
Asked about the technical chart pattern of Texmaco Rail shares, Sumeet Bagadia, Executive Director at Choice Broking, said, 'Texmaco Rail shares are looking positive on the technical chart. Those who have this stock in their portfolio are advised to hold long for the target of ₹150. However, they must maintain a strict stop-loss at ₹108. The stock is trading around ₹125, providing a good opportunity to accumulate for the existing shareholders."
On the suggestion to the fresh investors, Sumeet Bagadia said, “A fresh investor can buy Texmaco Rail shares at the current market price and hold for the target of ₹150. They also need to maintain a stop-loss at ₹108.”
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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